Most of the people view life insurance policies only as a tax saving instrument. People are unaware of the multitude of benefits offered by life insurance plans. Most of you must be aware that the main purpose of buying a life insurance is to ensure the financial security of your loved ones. Being a responsible adult, it is your duty to ensure the well-being of you family even in your absence. Life insurance provides you with many advantages that are unique to it and cannot be found in other investment avenues. Here are some of the unique and lesser known benefits of life insurance:-
- Return on investment: – Life insurance policies provide a huge coverage for economical premiums. Life insurance plans such as term insurance is very easy on the pocket, but provide a massive death benefits to your family. Life Insurance plans ensure that your dependents can lead a decent life economically, despite your death.
- Loan options: – In case you are short of money due to a financial emergency, you can even secure a loan against your insurance policy. The loan can be obtained for a percentage of the cash value of the policy. This way, you need not pledge your precious assets in order to secure a loan.
- Life stage planning: – Life insurance policies are a great investment tool for life stage planning. It assists you to plan for your different life stage needs. Apart from providing death benefits, life insurance also acts as a long term investment. The benefits from a life insurance policy can help you meet the various goals of life such as education of the children, retirement fund, marriage of children etc.
- Protected insurability: – A life insurance policy provides you with a permanent coverage even if your health and other situations change. Buying an insurance policy at a young age, locks in the insurability.
- Cash value:- Once your life insurance policy accumulates, the cash value of the policy becomes accessible for withdrawal for family and business opportunities, education funding, retirement income and other such financial emergencies.
With so many such unique benefits, a life insurance policy can be a worthwhile addition to your balance sheet and the foundation for your financial security. Along with the lesser know benefits also know some general benefits of life insurance here: